New year, new resolutions, and new beginnings. What a great kickstart to 2023 with an information-rich session on the connected contract management experience! If you missed watching it LIVE, click here to watch the on-demand version of our exclusive webinar about what connectivity a contract management solution on ServiceNow can bring across people, processes, and technologies.
Webinar Recap - Connected Contract Management Use Cases
Multiple processes come into play when we think of contract lifecycle management - both pre and post-award. Both pre-and post-award contract management are equally important because:
Pre-award:
- Helps ensure the accuracy and completeness of bid submissions
- Supports the negotiation process to ensure that all parties understand their obligations and responsibilities.
- Facilitates the selection of the best vendor for the project
Post-award:
- Monitors and manages performance to ensure compliance with the contract terms
- Resolves disputes and manages changes to the contract
- Helps manage risks, budgets, and schedules
- Facilitates the closeout process and ensures proper documentation and payment
Practical challenges of contract management include, but are not limited to:
- Ensuring compliance with contractual terms and conditions
- Negotiating and renegotiating contracts
- Tracking and reporting contract performance amidst silos
- Managing contract changes and amendments
- Maintaining accurate contract records and documents
- Managing risk and dispute resolution
- Ensuring timely contract renewals or termination
- Managing vendor and stakeholder relationships
- Integrating contracts with other business processes
- Managing budget and cost control concerning contracts.
What Constitutes a Contract, and How do Various Departments Contribute to Contract Management?
A contract is a complex document typically includes several components, such as clauses, pricing, terms, conditions, and other important information. These components often come from different sources and various business functions, including legal, finance, procurement, and other departments.
Contract managers need to thoroughly understand all these components to effectively manage contracts and ensure compliance with their terms and conditions. This requires a coordinated effort across multiple departments and a clear understanding of the organization's policies, processes, and procedures.
How does Effective Contract Management Uplift Source-to-Pay Process and Connect Various Processes in the Organization? Read More>>
What is all about Connected Contract Management Experience?
Connected contract management on a single data platform like ServiceNow refers to a centralized approach to managing contracts where all contract-related information is stored and maintained in a single, integrated system. It offers:
- Enhanced collaboration
- Improved visibility and accessibility
- Streamlined processes
- Improved risk management
- Better data management
What are the Unique Connected Contract Management Use Cases on ServiceNow Platform?
Contract Management and Accounts Payable Automation
Vendor payment insights can help inform the negotiation and drafting of contracts, including payment terms. For example, if a vendor has a history of making late payments, a net payment clause can be included in the contract to ensure timely payment and avoid potential disputes. This can help protect the interests of both parties involved in the agreement.
Contract Management and RFP Management
Risks identified in contracts can be used to inform the development of future Requests for Proposals (RFPs). In addition, the contract management team can use this information to understand better and anticipate the types of risks that may arise in similar projects or contracts. Primarily, when sending out an RFP to the same vendor, these insights help improve the RFP process to mitigate those risks. This can help ensure that the contracts and projects are executed more effectively and efficiently while reducing the likelihood of disputes or other issues.
Contract Management and ServiceNow GRC
A compliance checklist can be sent out by ServiceNow GRC (governance, risk, and compliance) in case any risks are identified. ServiceNow GRC helps contract managers to include risk mitigation provisions based on the identified contract risk insights. In addition, contract managers can return newly discovered risks to GRC for better risk and compliance management for legal teams.
Contract Management and Vendor Onboarding & Information Management
Information gathered during vendor onboarding can be very useful in deciding the terms and obligations to be included in a contract. For example, the vendor's experience, reputation, and past performance can help inform the negotiation and drafting of the contract to ensure that it is fair and equitable to both parties. In addition, the vendor's resources, capabilities, and capacity to fulfill the obligations outlined in the contract can also be assessed during the onboarding process and used to inform the terms of the agreement. This can help ensure that the contract is well-structured and that both parties can fulfill their obligations effectively.
Get in touch with our team for a LIVE demo to explore more uses.
Is there any Existing CLM Solution that Provides such Connectivity?
ServiceNow is a well-established IT service management and process automation platform, and integrating contract management workflows into it can bring additional benefits to organizations. One complete solution is Aavenir Contractflow, an AI-enabled contract management solution on the ServiceNow platform. It not only provides connectivity with other ServiceNow applications like LSD, VRM, PSM, ITSM, and ITBM but also integrates well with prebuilt workflows of vendor management, invoice management, and obligation management. Book a Demo>>
